#3 #2 HOMEWORK #1 #1 Figure 1 Price Supply and Demand Suppose you have a demand curve for McDonalds Big Macs. Show the impact graphically (draw the graph) to illustrate the impact of each of the following events on the demand curve. (hint: should be a movement along the existing demand curve, a shift the demand curve left, or a shift the demand curve right) a. The price of Burger King's Whopper hamburger declines b. McDonald's distributes a $1 coupon for Big Macs c. Because of a shortage of potatoes, the price of French fries increases d. Fast-Food restaurants post nutrition labels on menus e. The U.S. economy enters a period of rapid growth and incomes increase nationally Suppose you have a supply curve for Corn. Show the impact graphically (draw the graph) to illustrate the impact of each of the following events on the supply curve. (hint: should be a movement along the existing supply curve, a shift the supply curve left, or a shift the supply curve right) a. The weather is great for producing corn b. The weather is terrible for producing corn c. The price of corn increases d. There is an increase in the technology for producing corn e. There is an increase in fuel costs for producing corn Mickey Mantle was a more popular player than his teammate Whitey Ford. Show (draw the graph) how it is possible for Mickey's signature to be close or even less expensive than Whitey Ford's despite his popularity. $3 2 1 0 10,000 20,000 D 30,000 Quantity Image Copyright Protected 198764 587 DWG 5987 8394870PWCDH4995867 #4 Refer to Figure 1. At a price of $3, would there be a shortage or surplus of how many units? #5 Refer to Figure 1. At a price of $1, there would be a shortage or surplus of how many units?